Can a Fat Shack franchisee use the 'FAT SHACK' marks as part of their business name?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, we grant you the right and license to use the Marks solely in connection with your FAT SHACK Restaurant. You may use the Marks only in the manner authorized and permitted by us and you may not directly or indirectly contest our ownership or rights in the Marks. You cannot use any of the Marks or any portions or variations of them as part of your business name. You cannot use the Marks as part of an electronic address, domain name or on any websites on the Internet, or with modifying words, designs or symbols, except as we may license to you, without our prior written consent, which may be withheld for any reason. You may not use the Marks with an unauthorized product or service, or in a manner not authorized in writing by us. You must modify or discontinue your use of the Marks if we require the modification or discontinuance of them, at your expense.
Source: Item 13 — Trademarks (FDD pages 39–40)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using the 'FAT SHACK' marks as part of their business name. While Fat Shack grants franchisees the right to use its trademarks in connection with their restaurant, this usage is strictly controlled. Franchisees must adhere to the specific guidelines set forth by Fat Shack and cannot contest the company's ownership or rights to the marks. This restriction ensures that Fat Shack maintains consistent branding and quality control across all franchise locations.
This restriction extends to online presence as well. Franchisees cannot use the 'FAT SHACK' marks, or any variations of them, in electronic addresses, domain names, or on websites without prior written consent from Fat Shack. This consent can be withheld for any reason, giving Fat Shack broad control over its brand's digital representation. Franchisees also cannot use the marks with unauthorized products or services, or in any manner not explicitly authorized in writing by Fat Shack.
Fat Shack retains the right to require franchisees to modify or discontinue their use of the marks at the franchisee's expense. This provision underscores the franchisor's ultimate authority over the brand's image and ensures that franchisees remain compliant with any changes to Fat Shack's branding strategy. While the Franchise Agreement does not require Fat Shack to defend or indemnify franchisees against infringement claims, Fat Shack may choose to take action to protect franchisees using the marks in compliance with the agreement. If Fat Shack decides to protect a franchisee, it may reimburse the franchisee's costs from any excess funds recovered in litigation.